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tv   FOX Business After the Bell  FOX Business  November 7, 2012 4:00pm-5:00pm EST

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traders still see downsides. david: thanks, nicole. liz: there were cheers as the bell rings on wall street. dow jones industrials down 310 points. at a moment we were trying to -@climb back now back above a ls of 300 points. an important level we fell below 13,000 for the dow and the s&p 500 down 33 points. closer to the lows of the session, and the russell 2000 getting smacked losing a full 2.5%. david: i am hearing the volume at 4 billion shares, lots of volume when yo you're this downs heavily in big volume, you're in trouble. this may go further into the morning.
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all on-demand issues, whether the economy slows down on what will happen. seeing a drop of almost 5%. closing down $4.09 per barrel. liz: selloff began this morning. greek issues, it all happened in europe, protesters taking to the streets and the u.n. commission are saying they will have a steeper than expected recession. the european market falling pretty precipitously. you also have some losses nearly a full 2%. david: i gave you a little preview of coal. 12%, 14%, 30% to the downside. these are stocks that have had a tremendous boost over the past month. it all started with the first presidential debate when mitt romney said cole was looking good to him. mitt romney has no part at all in national decisions about coal
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and as result hole is dropping big time. liz: the market meltdown. hitting a one-year low in intraday trading. is it time to run or is this a e perfect time to jump in? we will talk to legendary investor wilbur ross. david: now that the election is over, what's to america's top ceos want to see from capitol hill? the largest transportation company is joining us in a first on fox business interview that you do not want to miss. liz: we want to tell you what drove the market down in the "data download." the selloff with all three major indices plunging falling more than 2% each. the dow and the below 13,000 130 posts in the steepest drop in more than five full months. all 10 sectors ended lower by the energy. the s&p 500 fell below 1400, the first time since august and it looks like we are staying there at least for today.
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the first day with volume topping $4 billion since september. a lot of action. rising against a basket of equities. what does that do? it powers higher, the dollar, and brings down some dollar-denominated commodities. 0.3% as the euro fell to the two-month low falling down by the bleak economic forecast. we have an interesting story with u.s. treasury prices pushing yields down the most since june. dropping 11 basis points at 1.65%, the lowest level in more than a full month. david: let's get to today's action. we found somebody who says he is still buying despite the selloff. we have a bull and a bear. let's start with mark at the cme. i have to ask whether this is all about taxes, the president
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is one of the first people in history who said he is going to raise taxes if elected and in fact that is what he's expected to do and he is now the president again. liz: i'm kind of surprised i had such a terrible day today. david: i am sorry to interfere, but we have qualcomm earnings, whole foods and qualcomm, qualcomm earnings are just out, robert gray, what are they? >> they came in better than expected. excited earnings-per-share bitting unadjusted bases operating profit of $0.89 or share. 7-penny higher than the average estimate. revenue exceeding expectations, $4.77 billion. looking at the outlook for the fiscal first quarter which they are in currently, offering guidance there above expectations. you are looking at basically earnings and revenues. double checking the numbers, both the entire range seems to be above the estimate.
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up 4% in after-hours trading. david: as apple goes, oftentimes so does qualcomm. including the iphone 5, but also microsoft with the new tablet of their own, the surface. let's go back to mark at the cme. could we see a comeback for tech stocks tomorrow? >> that is possible. the whisper numbers 83, $0.84. even bigger than that. if there is a foreign attack, that would happen. you still have systemic risk associated with the nasdaq that would bring everything down. i was about to get up and tell you the s&p will outperformed the nasdaq 100.
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and they have just changed my mind looking at the report. i think that is really bullish for tech. liz: we did not have a bullish day at all moving below to the downside that we have seen in five months. you just can't ignore that. what is that about? >> we've got this battle, tax policy and fiscal cliff versus keeping ben bernanke and his pickpixie sticks in the market. today tax policy and fiscal cliff one. it will weigh on us until we get some sort of idea there will be a resolution. i don't even think we need an understanding they're going to get together and do this. until then kelly have to start to search to find positive points on the market. three areas we have seen some positive degree.
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corn, the little bullishness in weekend golf. if we were down 30 some odd handles, it would have a huge day. it was such an ugly day here. david: thank you very much, we will come back to you with the s&p futures closed. liz: time for the street fight for the bears we have paul, hightower's group founder and managing director. for the bulls would have investment advisors and cio. what are your reasons besides the obvious to say we don't know what will happen with the fiscal cliff, we heard all of that, is there something else that worries you more? >> there's a whole list of things in addition to the fiscal cliff. earnings over the last five quarters. the estimates by the s&p this quarter coming in, 350-500 companies have already reported should be a drop of 2-3% in
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earnings. revenues continue to be flat. looking over the last five years, there has been zero revenue growth. you can look to the deficit, look to the gap. government spending $1.2 trillion more than taking in. there's a whole host of reasons we are seeing red today. david: even conservative republicans are upset about the effect of what happened last night. even whispers about maybe natural gas, if there is any compromise to be done, maybe one way the government can please energy fossil fuel and energy enthusiast is natural gas might be the way that goes. you're bullish on natural gas, explain why. >> would have a competitive advantage as a country, seeing companies built with tao, cole. that will help us going first. if you look at supply and demand
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because of low prices, supply is going down, people are starting to lay down and demand is going up on the margin whether it is dow chemical building a plant, royal dutch is with pittsburgh, this will help manufacturing tremendously in this country. liz: i would be remiss if i did not bring up hurricane sandy, actual gasoline is something we depend too much upon and if we had natural gas, powered cars some of us may have fared a little better. does that affect the landscape looking ahead at all? >> i am not sure about this, because reality is we have the gasoline, the power went out at the station. we switch to natural gas, i'm not sure that would have mattered. a natural disaster you cannot do much about. david: one of scott's picks was the southwestern gas. putting the ticker up, i want to ask about where you're putting your portfolio or how you're moving it around based on election results. i imagine you're more in cash than you were yesterday.
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>> yes, we are. we had been building up our cash position, allocating like bonds and fixed incomes, sweeping the treasury will go down 1.5%. we think there is more to be made there, but we are reallocating. pulling money out of equities. we feel some point in time there will be a dislocation in the market. so we're just waiting for those opportunities and being patient. liz: good to see you both. david: thank you, gentlemen. he describes himself as a man who likes to run into burning buildings. is he the guy who is running in? legendary investor wilbur ross. liz: now the election has passed, what are the top ceos really hoping to be? talking to the ceo and a member of the business roundtable the
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first on fox business interview. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the mke he goes with people he trusts, which is why he trades with a company that doesn't nick and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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liz: s&p futures closing right now, but whole foods, the stock is moving lower in the aftermarket session. >> pretty much in line last quarter $0.60 per share. growing to $0.20 per share, going forward to the next fiscal year commentary and below the average estimates, sales slowdown on a year-over-year basis still looking for growth but slower growth and also on the first companies that we have seen talkiig to the negative impacts for sales of hurricane sandy. we will see that and a lot more going forward and see how that is affecting the first five weeks of the quarter especially in the northeast region.
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david: the first time we had john on comic has tripled in value. it has come down the still a lot of value to it. s&p futures are closing, let's go to mark sebastian. what is it looking like? >> we closed a little bit lower than the 3:00 number. i really would have liked to see it get a little strength at the end of the day. we don't get a little bit of balance in the morning, half of the 1400 level, this could be an ugly ride down. only about 1350 if we don't get a bounce back tomorrow.
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liz: let's go back to nicole petallides. nicole: we saw the nasdaq the worst of the three indices today. qualcomm although it is a nice surprise, earnings per share beat earnings per share. revenue beat. the outlook for the full year, looking pretty good. it has come awfully earlier highs with the apparels for qualcomm, one to watch. a lot of losers today, hard to get into the green but so far so good for qualcomm. should be good to watch in the opening bell. liz: thank you nicole. david: our next guest is the ceo of a fortune 500 transportation company. a sector hit very hard by a multitude of both federal and state relations.
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a first on fox business interview, great to see you again, thank you for coming in. for the viewers who don't know, talking about a fiscal cliff, also a regulatory cliff with a lot of businesses, regulations amount to $1.7 trillion, $1.7 trillion tax on american businesses. you have dealt with the president a lot, has he shown any kind of flexibility at all on regulations? >> well, not yet. you raise one of them, tax policy, the fiscal cliff,
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sequestration is another one that i'll affect a lot of jobs. talk about the impact of american business in the last four years, that is like 12,000 pages of regulations. if you combine that with the fact that this has been the weakest post recession recovery in history, we have terrible gdp, high unemployment, and wasteful spending by the federal government, you can see why business is very concerned. the potential for tax increases for businesses and individuals are the largest tax increases in history.
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david: some say the democrats it would not be possible. there is significant deregulation of the trucking industry. fred smith said federal express cannot havcould not have started become a successful as it is that it had not for the deregulation put into effect during a democratic administration. it is possible to get significant deregulation with a democratic president. what would it take? >> it takes the will and leadership. again, we are envisioning the watching and waiting. i would not say anything today on november 7, i would not have said on november 5 the issues of uncertainty are still there. now the only first glimmer of hope is what you heard in the acceptance speeches. if in fact the president and the congress are willing to work together and reach some common ground, then we have a possibility. but if they will be deadlocked, we have great danger for the
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economy in 2013. i would be willing to bet at this point with the uncertainty, many businesses probably are preparing contingency plans for significant downturn next year. it doesn't have to happen if you have the people in the government, the administration, a white house, the congress can solve this but they better get to work. david: how many businesses would have started up but didn't because of regulations? we hear surveys from existing businesses saying with a roof or environment would you have started, a lot of people say no. have you heard about companies saying i never would've started in this environment? >> absolutely. the survey numbers that we have heard is 55% of current businesses said if i had to do today back then what have to do today, i would not be in business. think about all of the
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entrepreneurs, connectivity, economic impact of that were the case. that is a huge drag on business growth and stability. we need the growth, we need the jobs. david: with third-quarter earnings seemed to forecast a slow fourth-quarter, do you expect one? >> actually third-quarter was quite strong and we rais raisedr forecast after the third quarter. our expectation is we will continue to have revenue growth and double-digit eps growth as we were not forecasting anything bad yet. but that is based on good contractual selling effect our value proposition is really resonating well with customers and we are still investing. this year we will spend about $2.2 billion in capital because our customers are still making a commitment to long-term races, and that is a good sign.
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don't want any suppression about that confidence. david: wishes a member of the business roundtable doing some really good work with the administration taking action for a group of the business roundtable trying to push these changes along. great to see you again, appreciate it. liz: something a lot of people haven't thought about, the numbers of cars flooded and destroyed by super storm sandy, it could exceed that of katrina. watch out, coming up a man who sold more than his fair share of cars. cofounder and former ceo of car max on what mr. obama's reelection means for our economy. and a selloff on wall street, a wild ride for commodities, just look at the gold chart. up next off chicago on whether we might see a continuation
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tomorrow. we are coming right back.
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liz: several commodities tanks today following the election result. david: phil flynn at the price futures group joins us now. i don't want to barrel th. the lead, but why didn't gold take off? one of the main factors will be continuation of fed values that
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raise the dollar value of gold. why didn't it pop more than it did? >> i think because of the concerns over europe. when we are concerned about europe it is always bearish for gold. why is that? if the euro zone falls apart, wanting to have a value is gold. that we have even seen is a possibility of a way out of this mess. even talking "wall street journal" the possibility of goldbach eurobonds as a solution to try and get some credibility behind europe which right now doesn't have a heck of a lot of credibility and of course the eu president today didn't help. liz: so let's look over all of what is happening. you cannot discount a stronger dollar, when you see the euro went to $1.27, had been $1.31 over the past couple of weeks how much does that play into it and also the inventory numbers
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we got much bigger than expected build in crude. >> we have seen demand destruction on a historic scale in the northeast unlike anything we have ever seen. bigger than katrina and maybe on par with september 11. not just gasoline, talking 20,000 canceled flights, that is incredible demand. if you loo look at the inventory demand, for diesel and jet fuel down 15% over a year ago levels, those numbers make it worse with this nor'easter coming in. 8% drop, that is a lot of girls of oil and gasoline sitting in the tank way to the bank. and we're also pricing and economic pain. get used to it. more years of obama means more concerned about the economy, higher taxes, higher taxes on ad energy companies, less production and right now the market says the negative for the
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economy always negative for oil prices if you're worried about going into a recession. david: coal prices down 30%, coal stocks are getting hit. liz: gasoline down more than $0.20 over the past couple of weeks so it is important to note that helps the consumer. david: wilbur ross says businesses should be aware of his second term for obama, so what are the biggest issues investors have to be worried about? chairman and ceo joining us after the break. liz: said president obama's reelection be good for the economy? so far not great for the market, it has been one day though. a big fan of the president's auto bailout, why he says can listen to this, america has an extraordinary opportunity for
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liz: market lost a lot of steam just one day of a the presidential elections. right before the election our next guest said businesses would suffer if president obama got reelected. is that what the markets are telling us today and does he still feel that way? >> joining us legendary investor wilbur ross. you went further that that. you said if president obama is reelected we'll probably go into another recession. do you still believe that. >> what i said was i said if he doesn't exert leadership and solve the fiscal cliff i will. i don't believe we're in
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recession. david: he said if he is presented with a tax bill that does not include major tax increases he won't sign it. >> i heard speaker boehner is going around saying he might some revenue increase in return for an overall deal. i don't know if that was his actual words or not but that's what i heard. liz: you heard a lot of people, in fact the david stockman of the world, who is a conservative, said at some point it has to be a mix of both. do you think, look how frightened people are about this. they're rushing into safety and, both side have to see something's got to be done. do i believe it will be done? >> it should and reason it should this is not a typical lame-duck congress. there is very little change. the republican leadership is the same. democratic leadership is the same. president is the same. they have all seen this movie before. there is no reason for them to delay during the so-called lame duck period. they out to get on with it.
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david: one part of the simpson-bowles, not everybody, lou dobbs doesn't like it, a lot of republicans and democrats believe it was a good part of simpson-bowles and lowering tax rates and getting rid of deductions. it sounds familiar to people who were for mitt romney. maybe for that reason alone obama might not like it but a lot of democrats did. is that an area we might go? >> it would solve one set of problems which is, if you try to be selective about which deductions you knock out the lobbyists will go crazy. it will be a jubilee for k street. liz: well, yeah, that is the thing. >> whereas, if you say, no, no, no, deductions at all, much harder for individual lobbyists to change it. liz: or if you give people a choice up to a certain point, put a ceiling on it, you get this much, pick whatever you want like calf fear yaw style. >> that was idea mitt had i thought was a very good one. let the individual decide rather than congress and rather than the lobbyist. >> let me get to what you're
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looking at now. you're famous for picking up on distressed opportunities. last we spoke, natural gas freighters, moving liquid natural gas to europe because they pay more for that stuff. >> right. liz: also looking back, in the early days when you had bought a lot of distressed coal companies. you see coal falling again. would you look back into coal? >> i think recurring of the obama administration is bad for coal. the epa, as you probably know, has gone so far with trying to, enact by rule making, things that congress turned down. lost several times in court. they got overturned. epa is quite adverse to coal as far as i could tell. david: natural gas though, and i brought this up with the chairman of ryder system before you came in, it is one of those areas where it could be said, kind of a green energy. burns much cleaner than coal does. we have so much of it here. it could change the whole equation of the price of gasoline as well. is that something where the
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president could possibly please both the energy companies and his green lobbyists? >> well i, i think natural gas could have a transformative effect on the whole economy. it is not just natural or shale gas. it is also tight oil that is often found in association with it. we could be reducing our energy imports by 4 1/2 million barrels a day if there is no interference with it. at $100 a barrel, which it used to be, that's a huge amount of savings in balance of payments. and we could become an indeed are starting to become a net exporter of petroleum products. you can't export crude. it is illegal. but you can export petroleum products. think what a game-changer that is. and then think, what does it mean for the chemical industry, for transportation, for home heating? all sorts of uses to get the shale gas. liz: and your generator. wilbur was smart enough to
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get a natural gas generator. me, i was on gasoline. duh. thank you so much for joining us. >> thanks for having me on. liz: wilbur ross, always finding a way to make money no matter who is in office, right? david: great to see you, wilbur. liz: are we better off now than four years ago? that is a question many were asking ahead of the election. we have a former ceo who says yes. he says we're sitting on the opportunity of a lifetime for a manufacturing boom. austin ligon, former ceo of carmax joining us with that. david: if sandy was not enough, the northeast is getting hit with another storm, a nor'easter. we're already seeing snow right outside the window here. already this battered region has seen enough or so we thought. how much more will it get? more to come. ♪ . [ female announcer ] with the e-trade 360 investing dashboard.
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>> i'm robert gray with your fox business brief. it was a tough day for the butts on wall street as they face post-election blues. investors shifted their focus to the looming fiscal cliff. the dow is down more than 300 points. after the bell, prudential saying net profit fell short of estimates during the third quarter at a buck 53 a share the company boosted its annual dividend by 10%. prudential now plans to pay quarterly dividend starting in its first quarter. microsoft is reportedly building a seven-inch gaming tablet, according to the tech magazine the verge. it reports the xbox tablet concept would tie together microsoft's hit gaming
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console and a line of tablet pcs that run on windows 8 and windows rt. the magazine said it is in the initial hardware planning stage. that's the latest from the fox business network, giving you the power to prosper
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liz: president obama's second term in the white house will likely be just as challenging as his first. now, we've got a business leader who says it's clear the country is better off than it was four years ago. so what needs to be done to keep the economic recovery, while tentative, on a stronger and right track? joining us austin ligon, carmax cofounder and former ceo. it is a point of view certainly that not everybody shares but we want to hear why you believe it, austin. four years later you feel we're better off. what do we need to do so add more oomph behind that? >> i think we clearly are better off, remember, we were in collapse four years ago. but that is passed us now. let's talk about the future.
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liz: okay. >> that's what entrepreneurs like to talk about. first thing we have to do, agree with wilbur ross, we need to come to agreement. avoid the fiscal cliff. do some version of simpson-bowles and get that behind us so we make sure that the nervousness out there gross away. i think we'll get that done. i do think that, boehner is an adult. and president obama knows this needs to get done. so i think it will happen. the second thing, i think we need to get immigration reform done. i think the republicans got a very strong message yesterday which is, we can't really survive as a party if we don't start to attract more his pan fixes and more asians into our fold. and i think part of that is getting immigration reform done. oh by the way, once you do that you get people back into the system paying social security taxes who aren't doing that now and that helps. liz: yeah. >> -- hispanics. i think most important thing
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to get help the economy and give it the extra boost. the auto industry is going great guns. housing is coming back. we need something else to keep it going. europe is going the wrong direction. we'll have to put the oomph in ourselvesselves. infrastructure expenditure on highways and bridges. i would like to see new york seriously consider some tidal barrier system the way the dutch did after the 1950s. liz: that has been talked about. it would cost billions of dollars. conversely it would add millions of jobs we would at the very long tail when it comes to doing something like that. i would say they probably put something like that on the back burner it is one of those 70 year storms. austin, you talk about an opportunity for a real manufacturing boom that stemmed from natural gas. >> sure. liz: how do you see that coalescing and really happening? >> i think one of the things that both parties believed in their heart of hearts is that actually whoever won this election over the
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4-year period is going to be very lucky because we have one of the great opportunities in the modern history of our nation with all of the natural gas that we've discovered and the ability to start to put that in place. wilbur ross was exactly right when he called it transformative. it can not only make us a in the energy exporter, but it can also, it can transform our highway industry. i think you talked to ryder trucks ceo a little early. liz: ryder systems. >> i like the idea of converting over a period of time with some government guidanne so that industry knows how long is this going to take and they can plan for it the entire truck fleet in the united states to natural gas. that would drive --. liz: that would drive manufacturing. >> that would drive manufacturing boom on that side. go ahead. liz: what i want to ask is related to storm. you're a real expert. a lot of cars were flooded. when the floods recede, people shine up the cars, maybe get engines to work and try to resell them. have you seen that happening before?
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what can people do to protect themselves from a saltwater engine drenched car being sold to them like nothing ever happened? >> well, look, i think you talked to me, maybe some years ago when i was still at carmax. i will put in a plug for my old business. carmax guaranties they never sell flood-damaged cars. anyone ever gets through they take it back and get a full refund. so what you want to dom is go to a reliable dealer. >> yeah. >> you need to look out for those cars. but i think from the economic point of view, because there is not a big supply of used cars out there, this is going to be great for the manufacturers. this will give them a real shot in the arm. you will probably have, nobody has exact count. there were half a million cars destroyed in katrina or damaged sufficiently they essentially were effectively scrapped. i think you will have more than that here. and the industry is ready to produce those but it will produce them profitably. so i think that, in the short term this is going to hurt the economy.
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actual over the medium term this will be a big boost for the auto industry, the construction industry. but you do, i will say, over the next year you need to be very suspicious about late model cars because effectively, once a car has been seriously flooded there is no way to restore it to the sort of condition you want. it may be driveable but it will never be reliable in the way that you want. you want to avoid those cars. and the new carfax and some of the other systems out there will help with that but an honest dealer, like carmax or well-established franchise dealer is going to be your best bet in terms of not getting a shady deal. liz: optimism from a real entrepreneur, and some real advice from a car guy. thank you so much, austin. >> thanks a lot, liz. good to be here again. liz: we'll have you back for sure. carmax cofounder and former ceo. be careful, david, late models especially the area.
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david: you have to go to carmax. he is still a great salesman. another storm is pounding the new york region threatening to blow away recovery efforts. we'll take you live to an area getting hit again with heavy rains and wind. it is all coming our way. ♪
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liz: just one week after superstorm sandy new york and new jersey residents are facing the threat of another major storm. david: our own rick reichmuth is at the fox weather center to tell us where this thing is going. rick? >> you know what? first of all, it is not anything like sandy. we need to realize that we have snow, rain and wind. compared though not anything comparable at all. annoying nonetheless especially if you don't have power as some people don't, getting snow now. coastal areas of jersey shore, last we can seeing the devastation we have snow. it is certainly not good. but the snow fall totals are inch or two of slushy snow. this is quick hitting storm so that is good news. we're getting snow into parts of new york city and long island. we have another six hours to get through this. the winds will be 50 to 60 miles an hour. look at this, by 3:00 in the morning the snow is gone across jersey. gone in towards much of new york city.
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it is out of here by tomorrow morning. so that's good. we'll see the wind die down by tomorrow afternoon. we still have winter storm warnings in effect from maine down to the parts of the mid-atlantic. interior areas, isolated six inches. for the most part certainly nothing like we saw but an insult to injury getting this kind of the storm. liz: rick, thank you so much for the insult and injury. david: aren't you glad you didn't have to deal with that last night? imagine that, last night, would you be out in the snow. many folks in the northeast are trying to recover from superstorm sandy as the threat of the nor'easter presses on. head to an area once again in the storm's path. liz: liz macdonald live in staten island with the fox biz crew. liz? >> good to be with you, liz and david. we're? zone a of staten island. we're in a business district, of the business district of staten island. there are coastal flooding warnings. behind me essentially a stream of traffic. people have been advised by
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the mayor to evacuate. what we're seeing here off to my left is a block where, get this, guys. 1-foot wave, from the ocean which sits less than a mile away down the block, came from up the block, let me set the scene. came into this parking lot and hit these businesses here. you will see right here, liz and david, look at this. the wall of water blew out this window and storm surge basically went into the building. also the problem for this area, which by the way this whole neighborhood behind me is evacuated. the fire department is worried about gas leaks. they don't want another breezy point situation. what we're talking about here is also the storm surge came up through the plumbing. and so you're going to see here a water mark for how high the water was in this building. frank, come over here. show liz and david this water mark. see how high the water came. liz: oh my. >> we're going to talk to
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kenny. this is montelbano pool and patio. they have been here since the '80s, right, kenny. >> yeah. >> how does this hurricane sandy, you must feel like you're getting suckered punched by a nor'easter. >> we have no heat. i'm cold. i'm tired. we're getting no support from fema. saying if you want any type of loans go to the small business. and the banks aren't giving anything. >> the banks aren't giving anything. how does this storm rank? you've been here since the '80s. how does it rank. >> this is the worst i've ever seen. >> worst ever. we'll bring it back to liz and david. good to be with you guys. david: that is heartbreak. liz: our heart is with kenny, definitely. thank you, liz. "money" with melissa francis is next.
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